One Reason for the Fall in the Natural Rate of Unemployment

question 38

Multiple Choice

One reason for the fall in the natural rate of unemployment from 1980 to 2000 is

• A)changes in the demographic composition of the work force.
• B)the decline in inflation.
• C)increased competition from foreign workers.
• D)the depreciation of the dollar relative to foreign currencies.

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Definitions:

Confirmatory Bias

The tendency to search for, interpret, and remember information in a way that confirms one's preconceptions, leading to statistical errors.

Group Disagreement

The occurrence of differing opinions, views, or decisions among members within a group.

Seeking Information

The act of looking for or attempting to acquire data and facts to increase knowledge or understanding.

Social-Comparison Explanation

A hypothesis positing that people assess their own value and societal position by comparing themselves to others.